Anil Singhvi strategy April 20: Key market cues, important levels to track in Nifty 50, Nifty Bank

Anil Singhvi Market Strategy: Zee Business Managing Editor Anil Singhvi expects strong support for the Nifty50 benchmark at 17,500-17,575 levels on Thursday, April 20. For the Nifty Bank — whose 12 constituents include HDFC Bank, SBI, Bank of Baroda and Axis Bank, he sees support emerging at 41,825-42,025 levels and a strong buy zone at 41,525-41,725 levels.

Here's how Anil Singhvi sums up the market setup on April 20: 

• Global: Neutral

• FII: Negative

• DII: Neutral

• F&O: Neutral

• Sentiment: Neutral

• Trend: Neutral

For the 50-scrip headline index, he expects a higher zone at 17,660-17,725 levels and a strong sell zone at 17,750-17,825 levels.​ For the banking index, he sees a higher zone at 42,265-42,375 levels and a strong sell zone at 42,500-42,600 levels.

• FII index longs at 36 per cent on Thursday vs 37 per cent the previous day
• Nifty put-call ratio (PCR) at 0.84 vs 0.82
• Nifty Bank PCR at 0.90 vs 0.97
• Fear index India VIX unchanged at 12.15

ANIL SINGHVI MARKET STRATEGY

The market wizard points out that the Nifty is close to strong support at 17,500, and investors should continue with a 'buy on dips' approach in the market as long as the 50-scrip index and the Nifty Bank close above 17,500 and 41,500 respectively.

The market is bound to strengthen more once the Nifty and the banking index take out 17,850 and 42,500 levels on a closing basis, he says.

For existing long positions:

• Nifty intraday and closing stop loss at 17,475
  Nifty Bank intraday stop loss at 41,800 and closing stop loss at 42,000

For existing short positions:

• Nifty intraday and closing stop loss at 17,850
• Nifty Bank intraday stop loss at 42,625 and closing stop loss at 42,300

For new positions in Nifty:

• Buy Nifty in the 17,500-17,575 range with a stop loss at 17,450 for targets of 17,610, 17,660, 17,700, 17,725, 17,750 and 17,800

• Sell Nifty in the 17,725-17,800 range with a stop loss at 17,850 for targets of 17,700, 17,665, 17,625, 17,580 and 17,550

For new positions in Nifty Bank:

• Buy Nifty Bank in the 41,600-41,800 range with a stop loss at 41,500 for targets of 42,000, 42,125, 42,200, 42,265 and 42,325

• Aggressive traders can buy Nifty Bank in the 41,825-42,025 range with a strict stop loss at 41,750 for targets of 42,125, 42,200, 42,265, 42,325, 42,375 and 42,500

• Aggressive traders can sell Nifty Bank in the 42,375-42,550 range with a strict stop loss at 42,650 for targets of 42,275, 42,200, 42,125, 42,025 and 41,800

F&O ban update

• Already in ban: Balrampur Chini, Delta Corp
• New in ban: None
• Out of ban: None

Anil Singhvi's views on individual companies: 

• Tata Motors: Concerns about a big capex plan, it may be a while before cash flow turns positive
• Tata Communications results: Mixed results in terms of profit, revenue, margin; shares weak before earnings, short-covering expected at lower levels
• ICICI Securities results: Weak on all fronts, not a good sign for brokerage stocks

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